Are Skyscrapers Profitable?

Yes and no, says Peter Bill. As a look at London's delightfully nicknamed towers - the Shard, the Walkie-Talkie, the Cheesegrater - shows, it may take years, and multiple economic cycles for skyscrapers to recoup their investment.

1 minute read

June 13, 2013, 5:00 AM PDT

By Jonathan Nettler @nettsj


"[W]hy do developers bother building skyscrapers?" asks Peter Bill. An examination of the occupancy rates for four of London's newest towers "show it to be a risky game," he says. "Conception to completion can take more than a decade, ensuring the project is blighted by at least one economic downturn. The four towers examined above have yet to make a bean although all should when eventually filled."

“It’s much better to be the second owner of a tower, not the first,” says Digby Flower of Cushman & Wakefield. “The problem is you never know when in the cycle they will be delivered. But the big thing about towers is they have a 100-year lifespan and get reincarnated every 25 years.”

Bill compares the costs versus returns for vertically- and horizontally-oriented large buildings. "So a groundscraper costs £100 million to build and ends up worth £375 million," he concludes. "A skyscraper costs £125 million to build and is then worth £325 million."

"Why build skyscrapers? Lack of land, obviously. But there seems to be some sort of man thing going on here as well, doesn’t there?"

Friday, June 7, 2013 in London Evening Standard

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 16, 2025 - Diana Ionescu

Green vintage Chicago streetcar from the 1940s parked at the Illinois Railroad Museum in 1988.

Chicago’s Ghost Rails

Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

July 13, 2025 - WTTV

Blue and silver Amtrak train with vibrant green and yellow foliage in background.

Amtrak Cutting Jobs, Funding to High-Speed Rail

The agency plans to cut 10 percent of its workforce and has confirmed it will not fund new high-speed rail projects.

July 14, 2025 - Smart Cities Dive

Worker in yellow safety vest and hard hat looks up at servers in data center.

Ohio Forces Data Centers to Prepay for Power

Utilities are calling on states to hold data center operators responsible for new energy demands to prevent leaving consumers on the hook for their bills.

July 18 - Inside Climate News

Former MARTA CEO Collie Greenwood standing in front of MARTA HQ with blurred MARTA sign visible in background.

MARTA CEO Steps Down Amid Citizenship Concerns

MARTA’s board announced Thursday that its chief, who is from Canada, is resigning due to questions about his immigration status.

July 18 - WABE

Rendering of proposed protected bikeway in Santa Clara, California.

Silicon Valley ‘Bike Superhighway’ Awarded $14M State Grant

A Caltrans grant brings the 10-mile Central Bikeway project connecting Santa Clara and East San Jose closer to fruition.

July 17 - San José Spotlight